Department's New Debt-Management System Leaves Some Students Stuck in Default

By Kelly Field

Washington

Problems with the Education Department's online system for
managing student debt have cost taxpayers millions of dollars and
left thousands of borrowers in financial limbo, unable to put their
defaults behind them.

The department acknowledges the problems and says it's working
to fix them.

Under federal law, defaulted borrowers who make nine on-time
repayments on their student loans can have their loans restored to
good standing and their credit histories cleared. Borrowers